Case Analysis –

Derrick’s ice-Cream Company

Submitted to: Submitted by:

Dr. Asif Zameer Aashish Sehgal - 014002

Lavanya Subramanian - 014033

Mudrika Mittal – 014035

Shrey Virmani - 014052

Sreejith V - 014055

Diksha Chavan - 014063

1. BCG Matrix
For detailed account analysis for Derrick using BCG Matrix, please refer the below attached
spreadsheet.

BCG Analysis.xlsx

2. Recommendations for managing each account to the company

Ardron’s Wafers:
Ardon’s Wafers accounts for almost one-fifth of Derrick’s total revenue. They require low
discounts, also, their delivery requests are highly predictable. As per the matrix they lie in
Problem-Child (Question mark) quadrant. Since, they show consistency, Derrick can take
measures to boost sales and extract increased profits from Ardon’s and help it move towards Star
Quadrant.
Butler Ices:
Butler Ices has the second lowest share (12%) in the 6 recognized customers of Derrick. They
require large discounts for volume orders and insists on free delivery. Crisis deliveries are also
common. Large discount on frequent orders are also regular demand from Butler.
• Derrick’s should charge a nominal fee from Butler Ices for their special packaging
requirements
• Put a cap on free deliveries - either on the number of free deliveries or on the minimum
quantity delivered during the free run
• Derrick’s should train the Butler Ices team in order to develop a good inventory control system
• They should also impose nominal charges on crisis deliveries
Cahill’s Cones:
Cahill’s Cones has proved to be the best customer out of the lot where they:
• Always pay their dues on time
• Require low discounts and commissions
• Require no special packaging
• Follow JIT and thus their delivery schedule and inventory management aligns with Derrick’s

Cahill’s is the top performer, having a share of 25% of the annual sales, in Derrick’s customer
portfolio. Cahill’s are well organized and their policies gel well with Derrick’s.
Derrick’s can collaborate with Cahill’s to expand their operations in the areas where their control
is less than 10%, i.e. majorly in the outlying areas where the presence of small competitors is huge.
They can also potentially joint-venture with Cahill’s to increase the present market share of 35%
in the Metropolitan market.
Donleavy Ices:
Donleavy’s Ices has the least share of 9% (among the 6 recognized customers) out of the total
annual sales of Derrick’s. They haven’t proved to be an efficient and effective customer to deal
with, wherein they always pay their dues late and demand extra discounts even when it isn’t
feasible.
• To counter the problem of late payments, the discount should be made available to them only
after certain conditions are met. There should be certain rules and regulations guiding the
discounts offered to them
• The number of free deliveries could also be curtailed to a limited number to cut the costs.
Furthermore, the additional deliveries could be charged extra with a nominal amount
• Donleavy’s Ices has also threatened to take their business elsewhere and thus they should be
made familiar to the stringent rules and regulations that the company follow and which will
be levied to them as well. It should also be made clear to them that the organization is
prepared to forgo its customer if there is no improvement in the management controls from
them and its methodology of dealing on day to day basis
England Wedges:
England Wedges have a market share of 14% amongst the 6 customers.
• They rely on bulk orders which aren’t shipped frequently thereby keeping a tab on
transportation costs
• Rare visits from Derrick’s personnel which saves on labour cost
• Prepared to collate sales and make monthly claims which is making sure that payments are
made on a regular basis
• They require minimal discounts since they purchase in bulk which is justifiable
• They have few demands which can be fulfilled
• They’re reliable and consistent in their requirements
Derrick’s can increase the capacity of the cold stores so that it can accommodate bulk orders easily
and over a long run it might be cheaper than relying on other non-competitive firms to handle
excess capacity. Also, to increase market share, Derrick’s can collaborate with England Wedges
and Ardron’s Wafers as they promise a higher return since they together account for 1/3rd of
Derrick’s sales.
Frankston Chocs:
Frankston Chocs has market share of 20% among all the six customers of Derrick's Ice cream
Company.
• They are closely located to Derrick’s base
• Require frequent calls, extending to assistance with admin and help in-store displays
• Initiate separate sales credits for returned products
• Generates complex order details, due to which multiple queries arise before each transaction
can be completed
• Has weak internal organization
Since it is classified as a marginal dog, can offer more significant improvement opportunities. It is
too big of a risk for Derrick’s to lose them as they are quite an important customer (annual sales
obtaining from Frankston is £2m) having said that, the expensive nature of their accounting and
merchandizing procedures cannot be ignored. Further links might be explored, to explore the
future potential of Frankston Chocs as a customer. Separate assistance might be offered by
Derrick’s to reorganize inventory control procedures, ordering and credit procedures, with the
ultimate aim of converting it to ‘?’ status.